Treasuries traded within an.........>

US TSYS SUMMARY: Treasuries traded within an extremely tight range in the

overnight session until Europe woke up and the Bund market began to leak lower,

taking the Treasury market alongside.

- The 10Y yield is 2.5bp higher at 2.392% and there has been a bear flattening

of the curve led by the 10Y tenor.

- US swap spreads have been better bid at 2Y but with little movement elsewhere.

There has been a slightly easing in the tight repo market but the GCF repo rate

is still at 1.18%, and above the Fed effective rate. 

- Bill yields are continuing their rise and the Jan 25, 2018 bill is 1.6bp

higher today at 1.091%, its highest since early August with the market prepping

for a December rate hike.

- The 2Y German-US spread is at 228.4bp today, 1bp from the widest spread since

1999. 

- Later today, the Treasury auctions 4w bills and starts the weekly note supply

with the 2Y. There is little market moving data.